GREEN ENERGY FINANCE IN SOUTHEAST EUROPE AND THE EUROPEAN NEIGHBOURHOOD REGION: OEEB MAKES EUR 20 MILLION AVAILABLE TO GGF
- The Green for Growth Fund, Southeast Europe (GGF) is driving investment in energy efficiency and renewable energy
- OeEB funds to maximize development impact
Luxembourg and Vienna, 11 June 2014 - The Development Bank of Austria (Oesterreichische Entwicklungsbank AG – OeEB) is providing the Green for Growth Fund, Southeast Europe (GGF) with fresh funding totaling EUR 20 million. The investment will serve to develop renewable energy projects and improve energy efficiency in Southeast Europe and the European Eastern Neighbourhood Region to enhance climate protection in this part of the globe.
The GGF's target countries are characterized by rising energy demand and a mostly obsolete energy infrastructure. In most countries, energy is produced primarily from coal and gas-fired power plants. Not only are these fossil fuels detrimental to the environment, they also usually have to be imported at high cost. "Banking on the development of renewable energy generation in Southeast Europe ideally combines climate protection with economic growth," emphasize Andrea Hagmann and Michael Wancata of the OeEB's Board of Directors.
Significant savings potential
The GGF's target regions also have much catching up to do in the area of energy efficiency. Financing the investments this requires is therefore a major goal of the GGF. "Coupling investments in renewable energy with measures of maximizing energy efficiency is a key aspect of the GGF's mission. The OeEB's additional infusion of funding supports this approach and enables us to increase outreach in our target regions," explains Chris Knowles, Chairman of the Board of Directors of the Green for Growth Fund, Southeast Europe.
Small hydropower plant in Albania
OeEB and the GGF are already jointly financing the construction of a small hydropower plant by Austrian developer enso hydro GmbH in Albania. The 9-megawatt run of river project on the Lengarica is expected to supply electricity to up to 10,000 households.
In addition, OeEB will provide funding for the GGF's Technical Assistance Facility to maximize development impact. Supported programs include trainings on energy efficiency for local partner lending institutions or measures for maintaining international environmental and social standards.
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ABOUT THE GREEN FOR GROWTH FUND, SOUTHEAST EUROPE (GGF)
The Green for Growth Fund, Southeast Europe (GGF) is dedicated to enhancing energy efficiency and fostering the use of renewable energy sources in Southeast Europe, including Albania, Bosnia and Herzegovina, Croatia, FYR Macedonia, Kosovo*, Montenegro, Serbia, and Turkey as well as in the nearby European Eastern Neighbourhood region comprised of Armenia, Azerbaijan, Georgia, Moldova and Ukraine. The GGF provides refinancing to financial institutions for on-lending to enterprises and private households seeking to finance energy efficiency projects. The GGF also invests directly in small to medium-scale renewable energy projects. To maximize the impact of the Fund's investment activities, the GGF's Technical Assistance Facility offers capacity building support to local financial institutions and partners. The GGF was initiated as a public-private partnership in December 2009 by the KfW Development Bank (KfW) and the European Investment Bank (EIB) with the financial support of the European Commission, the German Federal Ministry for Economic Cooperation and Development (BMZ), and the European Bank for Reconstruction and Development (EBRD). Its growing investor base comprises donor agencies, international financial institutions and institutional private investors, and recently added the International Finance Corporation (IFC) and Netherlands Development Finance Company (FMO). The GGF, registered under Luxembourg law as a SICAV (variable capital investment company), is privately managed by Oppenheim Asset Management Services S.à r.l., Luxembourg, in concert with the fund advisor, Finance in Motion GmbH, Frankfurt/Main, Germany, and the technical advisor, MACS Management & Consulting Services GmbH, Frankfurt/Main, Germany.
* This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo Declaration of independence.
Oesterreichische Entwicklungsbank AG (OeEB) has been operating as the official Development Bank of Austria since March 2008. It specializes in the provision of long-term finance for the implementation of private sector projects in developing countries which create sustainable development. Additionally, OeEB provides technical assistance, which can be used to enhance the developmental impact of projects. For more information, please visit www.oe-eb.at
Media contact GGF
Phone: +49 (0)69/977 876 50-320
Media contact OeEB
Mag. Angelika Rädler
Marketing und Unternehmenskommunikation
Tel. +43 1 533 12 00-2979